Welcome to Crypto Talks by Kalkine, I’m your host Sage, broadcasting live from the Kalkine’s Sydney studio, let us tickle your defi fancies as we share some of this weeks trending crypto news For cryptocurrency traders, 2021 has been a wild ride so far and many analysts are anticipating a capitulation in the meme stocks Dogecoin and Safemoon – if that’s a new term for you, that could see investors sell off or surrender their positions en masse Yet with rumors that Apple may be buying Bitcoin circulating, there are still many reasons why decentralized finance or DeFi allures newcomers to start investing A major persuasion is that it’s open to almost anyone in the world with a computer and internet connection to generate passive income from the allusive internet currencies In the first half of the year alone, Bitcoin’s price has seen more ups and downs than a Sydney Tower elevator And some analysts are expecting that after a rebound due soon that Bitcoin could crash to as low USD$14000
We wait with bated breath to see how this roller coast ride pans out For those holding onto Bitcoin for the long term, however, things haven’t been quite so bad Which brings us to the first topic in todays show Dollar Cost Averaging your Bitcoin assets We will also be taking a closer look at how cryptocurrency investors can make passive income through lending and staking their coins and the cultural revolution that is meme stocks and what that means to finance First introduced by Benjamin Graham, known as the Oracle from Omaha, Warren Buffet’s mentor
This led to Mr Buffet himself to advocating compound investing The stock market takes many guises, with some seeing it as a lucrative investment vehicle when using low risk strategies such as Dollar Cost Averaging, this concept can also be applied to the crypto market with investors raking in long term benefits First and fore most this strategy of Dollar Cost Averaging which involves making regular small deposits into buying assets such as Bitcoin can help to alleviate the issues of availability of Lump sums of free cash, needing to accurately time purchases by estimating the support price ranges in the market, taking a load of stress off of investor shoulders In the extremely volatile crypto market this strategy can prove to be useful by minimising your risk and maintaining a good exposure to the market’s assets
Fast spikes in price and rapid movement won’t directly affect your investment As it is spread out over time, and the cost averaged out over time allowing the investor to gain from compounding annual growth You can view it in this way – as the market decreases your regular interval purchases will be gaining assets at a discount and when the market gains, the value of portfolio increases So, if your investment goals are to gain from long term gains then dollar cost averaging could eliminate those sleepless nights waiting for the next Tweet from billionaire CEO’s who have been impacting the crypto price movements Slow and steady could win the race for you Not all cryptocoin holders are keen for the risky trading via exchanges some are also making gains through less aggressive strategy’s utilizing other protocols available through the defi network to expand the value of the virtual assets
Whether it’s their lassaiz-faire economic inclinations that lead to the shunning of the traditional banking system or a basic need due their remote geographical location Global crypto holders earning annual percentage yields (APY) on their coin holdings which outshine most banks savings accounts returns Let’s take a look at two of these methods now Method #1: Lending Could it be as straightforward as it sounds? Smart contracts lock in digital assets allowing users to monetize gains via through third party platforms This is a highly recognized defi activity and made familiar by large platforms like Maker DAO who specialize in lending protocol
It’s gained popularity as there is limited chance of defaulting on repayments It has been reported that some platforms, such as Compound Finance, offer APY as high as 81% So borrowers access the loans and the lenders are paid interest accrued through the smart contracts It’s staking taken to the next level basically
Method #2: Staking Users who wish to earn passive income from their digital assets are also aiding the crypto markets with needed liquidity through the capital in their virtual assets earning incentives All without the use of the middle-man banks Maybe the traditional systems have a skewed focus leveraging the corporations instead of the individuals? I’ll let you be the judge of that You may remember last week when Uniswaps own token UNI surged, due to Uniswaps exchange mechanisms being imported onto CoinMarketCap allowing Ether based tokens to be swapped directly on their site In a similar method to lending, staking is a process where digital assets are locked into smart contracts
In a similar structure to savings accounts using blockchain technology, staking crypto coins can accrue interest in the form of blockchain tokens Similar to Uniswap other Defi Exchanges offering Automated market maker facilities are Pancakeswap with their token CAKE and PPAY token derived from PlasmaFinance defi exchange A nations taxation policy would be of interest to how it affects the earning from these investments And it’s important to consider your financial objectives and position before making any investment decisions
This information is not financial advice but more an overview at some of the options available for passive income streams to those who hold cryptocoins Due to China’s regulations onto the crypto sector reducing the number of computers on the network significantly there is now also less security on the network So, investors should approach opportunities with caution being aware that there are “rug pullers” and scammers out there who have intentions of draining liquidity pools by stealing investors tokens Because of this risk, portfolio trackers have increased in popularity such as Zerion and Rotki that allow defi investors to keep track of their wallets over multiple platforms using a single control panel It has been estimated that close to $30 million in cryptocurrency has been stolen by hackers in this year alone
@@@@@@@@@ And now we’re due for a short break, but don’t move a muscle as we’ll be back to with more crypto trending news right after this @@@@@@@@@ Welcome back viewers you are watching Kalkine TV live from the Sydney studio and my name is Sage In this the 2nd part of today’s show we are going to look at how meme stocks such as Dogecoin are changing the face of finance Art and money is an age old discussion and why is not everyone in the world liquid in capital with free flowing cash? These are the philosophical conundrums that many an aesthete may ponder before he lays his head down to sleep However, the emergence of meme stocks such as Dogecoin gives bittersweet food for thought on the subject
There are no hard and fast rules for determining the value of art in culture yet in the open digital economy where economics, art and tech converge Dogecoin as a cultural product has seen some success Not only because of it’s famous fans such Snoop Dogg, Gene Simmonds, Elon Musk and Mark Cuban raising it’s value as a financial assent But how legitimate are it’s holdings, when it was created as a joke in 2013, in a system that is defined by oligarchies and free-markets? Maybe it’s Dogecoin’s ability to steer internet surfers away from online betting and gaming to putting their money into meme stocks instead where power in numbers can even turn the tables on some of the largest global hedge funds, causing them lose millions of dollars of investor funds on trades as we witnessed early in the 2021 For some professionals, Dogecoin appears to be little different than a Ponzi scheme, whose trading volume spiked in little over 24 hours from zero to $32 million per month
Owning Dogecoin is about participating in a cultural revolution, it’s about being able to offer tips on trades and feel the euphoria of helping others make an easy buck on the side But for all it’s obscurity it’s not alone, surpassing other meme coins SEXcoin and BBQcoin breaking through as a financial asset with the help of it’s famous advocates And the uproar from platforms such as Reddits WallStreetBets, where influencers such as YouTuber “Roaring Kitty” garnered interest into meme stocks such as Gamestop stock On the back of the famous “short squeeze” created by a bulk of retail investors buying Gamestop stock when global hedge funds had prepared to short the stock, lost millions of dollars of money Dogecoin’s market capitalization at it’s peak was approximately $52 billion making it more valuable than Barclay’s Bank $44 billion
All in all cryptocurrencies are somewhat of an economic revolution where it’s not all about the money but about the participation in the in the industry and being in the know And we all know that knowledge is power So why don’t more financial advisors recommend crypto to their clients, the plain and simple reason is because it’s not regulated by the Securities and Exchange Commission and Financial Industry Regulatory authority, which is the reason why trading online platforms and apps are so successful in the sector However, data gathered from the Financial Planning Association’s 2021 Trends in Investing Survey indicated that 26% of financial advisors are going to increase their use or guidance veering towards the use of cryptocurrencies in the next 12 months Let’s face it viewers, it may not yet be the legal tender, due to it’s volatility, but crypto is here to stay with over 4000 alt coins being mined
Perhaps it will take more than a billionaire’s approval to make Bitcoin a mainstream currency Indeed, Paraguay has become the second country after El Salvador to recognise Bitcoin as legal tender This is perhaps the way of the future for Bitcoin to gain more mainstream recognition and thus gain more stability than the year 2021 has had to offer Thanks for joining us on the report today please stay tuned to Kalkine TV for more trending news across the economy, markets and diverse themes and sectors
